Terra’s native assets LUNA as well as UST created havoc in the market. Turning the entire space upside down, the market was left bleeding. With nearly a 100 percent downfall, LUNA succumbed to a low of $0.0000545, at press time. TerraUSD, the stablecoin on the other hand, lost its $1 peg and was at a low of $0.17.
Amidst this chaotic downfall, an array of crypto exchanges began dropping support for both the assets. Just when the community began speculating that there was no hope for the platform, this asset management firm walked in as a saving grace.
The crypto project’s founder Do Kwon garnered immense backlash as his rescue missions were proving to be weak. As the price of both these assets continued dropping, GAM Holding AG revealed that it had extended support in recovering UST.
GAM, a Swiss asset manager listed on the SIX Swiss Exchange intended to pour anywhere between $2 billion and $3 billion into the project. This investment, however, would focus on Kwon’s recovery plan of absorbing UST’s excess supply. Through this, the asset manager hopes to revive UST’s peg.
Additionally, the asset manager is already in talks with Terraform Labs as it reportedly sees potential in the project. Elaborating on the same, GAM CEO Peter Sanderson said,
“We firmly believe in Terra’s ecosystem. Just as importantly, we believe in UST’s algorithmic approach to valuation. When investors have proper incentives, they naturally trade in ways that maintain price stability. When black swan events impact markets, opportunities blossom. We see opportunity in UST’s recent activity, and continue to see promise in Terra’s broader strategy.”
Is this UST rescue mission coming in too late?
Despite the announcement of the recovery plan, the crypto community continued to exhibit immense stress over the downfall. An array of them revealed that they had poured their life savings into the project. Several even suggested that they were broke and homeless following the latest incident. A few others hand filled Twitter up with conjectures of why the entire scenario occurred.
Kwon’s previous comments and tweets surfaced. Crypto Twitter seems to have torn Kwon apart.
While the team prolongs its efforts in saving the project, the community is unlikely to veer back into it.